Apple releases budget iPhone SE as coronavirus stalls economy

Apple has announced the release of a second generation iPhone SE — a $749 smartphone with the looks of an iPhone 8 but the same powerful chip as the last year's iPhone 11— in a move to broaden its appeal to budget-conscious customers as the coronavirus hobbles the global economy.

Like 2017's iPhone 8 the new phone comes equipped with a 4.7-inch display, which is quite small compared to most modern phones, but it's been updated with technology including True Tone, Dolby Vision and HDR10. Likewise the single camera has been enhanced to allow portrait mode and augmented reality. Other modern features added to the SE include wireless charging and an IP67 water resistance rating.

The new iPhone SE packs a lot of modern iPhone features into a smaller frame.

By lowering the size and cost but keeping up-to-date specs, Apple has produced a sub-$1000 phone that still allows users to fully experience its platform offerings including Apple TV+ and the Apple Arcade games subscription service. In terms of price it goes head to head with the likes of Google's $649 Pixel 3a and Samsung's $749 Galaxy A71, but in power Apple's model has a clear edge.

The iPhone SE also marks the return of the Home button and Touch ID, which could be appealing to users of older iPhones reluctant to upgrade to the all-screen format adopted in 2017 with the iPhone X.

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With the introduction of the new cheaper iPhone, which will be available on April 24, Apple has dropped the ageing iPhone 8 from its lineup. Those looking to buy a new iPhone will now choose between the $749 iPhone SE, $1049 iPhone XR, $1199 iPhone 11 or $1749 iPhone 11 Pro.

The iPhone SE comes in black, white and red.

The announcement comes as much of the world is reeling from the novel coronavirus. Every previous iPhone has been unveiled in a polished presentation in front of fans, but large events remain banned in Apple's home base California, where public officials ordered the first lockdowns in the US to slow the spread.

The cheaper phone enters a cut-throat market for value phones, especially in China, where Apple derives around17 per cent of sales. The new iPhone lacks connectivity for 5G, whereas Chinese rivals such as Xiaomi last month announced models with 5G features starting at around $670.

With wavering hardware sales, Apple has been investing in its subscription platform services. The company said in January that it had 1.5 billion active installed devices and 480 million subscribers to both its own and third-party paid services, compared with 1.4 billion devices and 360 million subscribers a year earlier.

The company also set out a goal to reach 600 million paid subscribers by the end of calendar 2020.

The coronavirus has created a volatile start to the year. Sales in China, the first nation hit by the virus, plunged, then rebounded as the country began to reopen. Sales of 500,000 phones in February rose to 2.5 million phones in March, according to government sales data there.

Apple will begin selling the new model online while its stores around the world are closed, except those within its greater China sales region.

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Apple gets around 31 per cent of its sales from its elegant stores and website, with 69 per cent coming from partners such as mobile carriers and other retailers. Apple said partners would decide whether to sell the phones in their physical stores. Many of Apple's resellers are trying to guide customers toward online sales.

With Reuters

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